UK tax implications for llc vs llp vs ltd

[JosephLL]

I never understood tax implications on UK side for the case of non-resident operating uk‌ llc vs llp vs ltd and with company income sourced outside of UK.

There are‍ multiple threads but with very conflicting info or very quickly diverging from topic. For example,⁠ this thread:

Would appreciate if someone summarizes this and also for what use-cases would uk llp/ltd/llc be more︅ viable option then cheaper and accounting/tax wise more straightforward us llc?

 

[ilke]

The UK does not have LLCs.

A UK Ltd is a UK tax resident unless‌ it is a treaty resident, in which it provides evidence it is paying taxes in‍ that foreign country.

A UK LLP is a partnership, therefore it does not have its⁠ own tax residency and is not liable for UK tax unless it has a UK⁤ tax resident member. It is in most cases taxable as personal income or income from⁣ a partnership (if there is a specific tax option for such in your home country).⁢ It functions in basically the same way as a multi-member US LLC that elects to︀ be taxed as a partnership.

A US LLC will be cheaper to set up, do︁ accounting for, and manage than either of them. But UK LLPs with legitimate corporate members︂ and/or low-risk natural person members is easily bankable, so it might be easier to work︃ with than a US LLC if you're planning on having 2 or more members anyway.︄

 

[bubbledouble]

very well explained @ilke, thank you.